Ethic Issue Ã¯Â¿Â½ PAGE Ã¯Â¿Â½1Ã¯Â¿Â½
Ethics Issue Paper
Robin L. Marsh
April 2, 2010
Doing business in the global market has brought many changes to the old business model. Today the ethics of a how business operates is a primary concern. Many issues have come to light during such disasters such as the ENRON scandal in which the lives of many people were financially destroyed to the substandard manufacturing practices in the case of Toyota that has damaged the reputation of the company and therefore lost consumer confidence in their products (MacDonald, 2010). In today's world it is more important than ever for businesses to conduct themselves in a professional manner and engage in legal activities.
Clearly defined business ethics is a system of moral principles applied in the business world. Business ethics provide guidelines in the form of written or unwritten codes of principles and values that govern the strategy formulation and day-to-day operations of the organization.
Ethical questions range from practical, narrowly defined issues, such as a company's obligation to be honest with its customers, to broader social and philosophical questions, such as a company's responsibility to preserve the environment and protect employee rights. Many ethical conflicts develop from conflicts between the differing interests of company owners and their workers, customers, and surrounding community. Managers must balance the ideal against the practical-the need to produce a reasonable profit for the company's shareholders with honesty in business practices, safety in the workplace, and larger environmental, and social issues.
Following the ENRON disaster outrage over ethical and financial misconduct by senior management of public companies historic legislation redefining the roles and responsibilities of corporations and those who serve them was enacted. Greed, which was manifested in personal enrichment of officers at the expense of shareholders and manipulation...